Under the auto policy 2016-21 government has given green signal to many new automakers to build their assembly plants in the country; similarly, new automakers are also given Greenfield investment status to provide them with necessary incentives against their investment in Pakistan.
As of now, according to our research, eight new automakers have been given Greenfield investment status by the government, which are:
- Regal Automobile Industries Limited
- Kia-Lucky Motors
- Hyundai-Nishat
- United Autos
- Khalid Mushtaq Motors
- Foton JW Auto Park, owned by JW SEZ (formerly Ruba SEZ)
- Sazgar Engineering Works
- Master Motors: An agreement has been signed between Mater Motors and Chongqing Changan Automobile Limited– a Chinese vehicle manufacturing company and according to the agreement Master Motors would assemble their cars in the country. The company has also been granted Greenfield status.
Read Also: 8 new automakers got permit to enter into Pakistan auto industry
Greenfield Investment is defined as the installation of new and independent automotive assembly and manufacturing facilities by an investor for the production of vehicles of a make not already being assembled/manufactured in Pakistan.
Greenfield incentives:
- Duty-free import of plant and machinery for setting up the assembly and manufacturing facility on a one-time basis;
- Import of 100 vehicles of the same variant in CBU form; at 50 percent of the prevailing duty for test marketing after groundbreaking of the project;
- Concessional rate of customs duty @ 10 percent on non- localized parts and @ 25 percent on localized parts for five years for the manufacturing of Cars and LCVs;
- Import of all parts (both localized and non-localised) at prevailing customs duty applicable to non-localised parts for manufacturing of trucks, buses and prime movers for three years, and
- The existing policy for Motorcycle industry as approved by the government and notified by FBR vide SRO 939(I)/2013 and SRO 940(I)/2013 shall continue.
This list is based on our findings, if you have more add, please comment below.
